Gold Silver Reports (GSR) – Atlas Jewellery are Set for Their Biggest Monthly Gain – M.M. Ramachandran was released on bail in June more than two years after a Dubai court sentenced him to three years for defaulting on loans. He said the company has paid off part of the money owed to a consortium of banks by selling some assets in Oman.
At a time when Indian authorities are seeking to bring to book absconding jeweler Nirav Modi for allegedly masterminding a $2 billion bank fraud, investors are cheering the release of Ramachandran on hopes he may hasten debt repayment. Shares of the company surged as much as 88 percent in June to a three-year high before paring the advance to 26 percent as of Monday.
Ramachandran owed about 550 million dirhams ($150 million) in 2015, according to a Khaleej Times report. Financial woes pushed the jeweler to close about 30 of his outlets in the U.A.E, Oman, Saudi Arabia and Qatar, of about 48 worldwide, he said.
Ramachandran, 76, plans to open a store in the U.A.E as a first step toward rebuilding his company and scale these up to at least 10 outlets by 2020. As for adding to his two stores in India, “sky is the limit,” said the former movie actor from the southern Indian state of Kerala. – Neal Bhai Reports (NBR)
